2026 (6) TMI 339

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....ated 19/02/2024 for A.Y. 2018-19. The assessee has assailed the impugned order of the CIT(A) on the following grounds of appeal before us: "1. On the facts and in the circumstances of the case, the order of the ld. CIT(A) is erroneous both on facts and in law and is passed in gross violation of principles of natural justice. 2. Without prejudice to the above, the ld. CIT(A) failed to appreciate that the assessment order is barred by limitation as the alleged income escaping assessment is below Rs. 50 lakhs and the AO could not have reopened the assessment for the assessment year under consideration and passed order thereto. 3. Without prejudice to the above, the ld. CIT(A) erred in sustaining the addition made by ....

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....erits of the addition, the Ld. AR submitted that the subject cash deposits were sourced from, viz., (i) consultancy services provided by the assessee; and (ii) funds received by the assessee from her husband. 3. Per contra, Shri T Sunil Gowtham, the Ld. Senior Departmental Representative (for short, "Ld. Sr-DR") submitted that at the stage of reopening, the AO had information that the assessee, a non-filer, had made an investment in property of Rs. 1.10 crore and cash deposits of Rs. 10,08,800/-, therefore, as at the stage of initiation of proceedings, the AO had material indicating escapement of income exceeding Rs. 50 lakhs, therefore, he had remaining well within his jurisdiction reopened the case beyond a period of 3 years. It was su....

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.... the merits of the addition, we find that the AO has treated the entire amount of cash deposits of Rs. 10,08,800/- as an unexplained investment under section 69 of the Act. 7. On merits, there is neither any material available on record which would substantiate that the assessee, a non-filer stated to be an engineer, was providing consultancy services, nor any material or evidence was filed before the AO to prove that the assessee's husband had provided her any funds to source the cash deposits in her bank account. As the explanation of the assessee is devoid and bereft of any substance, we are unable to accept the same. 8. At the same time, it cannot be completely ruled out that the assessee may have had some availability of cash in ....